Ministry proposes raising environment tax

Ministry proposes raising environment tax The Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from July 1 which will boost the annual tax revenue to VND57.31trn (USD2.5bn). illustrative image The ministry is gathering opinions about the hike before submitting to the National Assembly for approval. They proposed to raise the environmental protection taxes from VND3,000 to the maximum of VND4,000 per litre of petroleum products. Environmental protection taxes will increase from VND1,500 to VND2,000 of diesel, and by VND1,000 on all other oil products. It is estimated that the annual revenues from environmental protection taxes will increase by VND15trn (USD660m), to VND57.31trn after the hike. According to the ministry, oil and petroleum products contain toxic substances that have a negative effect on the environment even when they are not in use. Raising the environmental protection taxes is hoped to encourage people to use energy more effectively and switch to environmentally-friendly products in the future. Moreover, the state budget is badly affected after import taxes are reduced or exempted, especially from Chinese and South Korean markets, in accordance with the trade agreements. The import tax revenue from ASEAN countries decreased from VND13.5trn (USD59m) in 2015 to VND5.8trn in 2016. Last year, this revenue continued to drop by 97 percent. The fuel prices in Vietnam are said to be much lower than neighbouring countries. Statistics from Global Petrol Prices show that gasoline prices in Vietnam as of November 27, 2017 was VND18,580 (82 US cents), lower… [Read full story]


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